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NYC to force Airbnb to disclose data on hosts
Chris Lehane, head of global policy at Airbnb, said the policy will violate the privacy of hosts. (Jim Wilson/New York Times/File 2015)
By Gerrit De Vynck and Olivia Zaleski
Bloomberg News

NEW YORK — Airbnb Inc. will need to share the names and addresses of hosts in New York City with officials thanks to a new law, the latest setback for the home-rental company in one of the world’s largest tourism destinations.

The law, which passed Wednesday, is designed to help enforce existing rules banning short-term rentals. Mayor Bill de Blasio has said he supports the bill. Earlier in the day an Airbnb host backed financially by the company filed a lawsuit against New York City, accusing officials of retaliating against him for speaking out in support of home rentals.

Chris Lehane, head of global policy at Airbnb, said the policy will subject innocent hosts to over-policing and violates their privacy. Lehane, a former adviser to President Bill Clinton, lashed out at the council in a conference call with reporters and accused the bill’s supporters of putting the interests of hotel owners and unions above regular New Yorkers. “This is a bill that really is designed to benefit the hotel industry,’’ he said.

The debate over Airbnb’s role in New York has raged for years, with housing advocates saying short-term rentals contribute to rising rents and gentrification, while the company argues it helps homeowners afford their mortgages. Regulation hasn’t stopped the rise of the San Francisco-based company, which is valued at about $31 billion and has faced resistance from local governments practically since it started a decade ago.

“This is about preserving as much affordable housing and housing stock as possible,’’ said Carlina Rivera, the councilwoman who introduced the bill. Before she was a politician, Rivera worked as a housing advocate and helped tenants who had been pushed out of their apartments by rising rents. “I would hear stories all the time of landlords that were hoarding apartments, that were running illegal hotels,’’ she said.

Council speaker Corey Johnson has led criticism of Airbnb for years, framing it as a way for property managers to escape taxes and safety regulations. New York City has been tightening rules on sites like Airbnb under de Blasio, including strengthening a ban on rentals lasting less than 30 days.

Despite Lehane’s protests, Airbnb played down the effect that the New York law would have on its business. “Most of our revenue is really coming from a much, much larger group of cities,’’ Lehane said. “This is not going to have an impact on us from a broader business perspective.’’

With financial backing from Airbnb, Stanley Karol, a 56-year-old Airbnb host in Brooklyn, sued the city in federal court Wednesday, accusing officials of retaliating against him for speaking out in support of home rentals.

The city imposed fines on Karol that could total more than $30,000 after he appeared at a council meeting in June, according to the complaint. Airbnb agreed to pay his legal fees in the case, said Christopher Nulty, a spokesman for the company.

The Airbnb-backed lawsuit is another twist in a nearly decade-long war between the company and New York. Airbnb sued the city and state directly in 2016 over a law restricting short-term sublets. It settled both cases within a couple months. The battle raged on this year, with the city comptroller accusing Airbnb of costing New Yorkers $616 million in rent increases and Airbnb accusing city council members in June of being in the pockets of the hotel industry.

Litigation finance is a controversial new tool for Airbnb. Peter Thiel, the billionaire technology investor and President Trump backer, used it to great effect when he funded Hulk Hogan’s suit against Gawker. Unlike Thiel, Airbnb isn’t trying to hide its involvement in the New York suit.

“People shouldn’t have to worry that when they go home, there’s going to be a knock on the door just because they decided to speak up against the government,’’ said Andrew Celli, an attorney at Emery Celli Brinckerhoff & Abady LLP, which is representing Karol.